Administration Drop

You may be surprised to learn that the number of companies entering administration in the first quarter of 2013 was at its lowest level since 2005.

High profile retail casualties including HMV, Jessops and Blockbuster generated huge media interest. However, across the country in the three months to 31 March 2013 the number of administrations fell by 32% compared with the same period in 2012. The actual number of administration was 490. This was the first quarter that they have dropped below 500 since 2005.

This follows a 10% decline in the number of administrations in 2012 compared to 2011.

There was an expectation that the March quarter day for rents might have seen further high profile casualties in the retail sector but this has not been the case.

Overall construction, retail and manufacturing are still the worst hit sectors of the economy.

It is too early to say if this news heralds the start of an economic recovery as administrations historically tend to increase when the economy is either on a downward or upward curve. The drop in administrations may just be a reflection of the continuing stagnation of the economy.